More than four out of 10 car dealers (44%) think used car buyers will stick with petrol and diesel cars for longer following the government’s decision to delay the ban on the sale of new ICE vehicles to 2035.
According to Startline’s November Used Car Tracker, 29% of dealers said that the 2035 move means that the used EV market will take longer to develop. Nearly 20% said that consumer demand for EVs will reduce and 20% said that EV values and prices will fall further. Additionally, 24% of dealers now believe it is more likely that motorists will buy a hybrid as a stepping stone to full electrification.
Paul Burgess, CEO at Startline Motor Finance, said: “Our research shows that almost half of dealers think that Rishi Sunak’s decision to push new car electrification back to 2035 will have a direct impact on the used market, reducing demand for EVs as consumers choose to take longer to make the switch away from petrol and diesel.
“Sizeable numbers also think the speed of the development of the used EV market will be affected, as well as EV values and prices as consumer demand drops away. If these dealers are right, it’s a pretty disappointing scenario for the EV sector with almost the only positive point being a potential increase in interest for hybrids.”
However, Startline’s research also shows that a sizeable minority of dealers (24%) believe that the 2035 decision will have limited impact on the rate of used EV electrification because motor manufacturers are already committed to the original 2030 date.
